To work around my problem with current file path limitations and my source control needs, I decided to pivot my TXT files to Regular Expressions.
So, a TXT file with a list of tools such as ...
...becomes (adze|allen wrench|anvil).
I used a macro in Notepad++ to reformat the text and kept the original TXT file around for reference. Now all the values are embedded in the XML, stored in source control, and my file path problem is eliminated.